Dark Cloud & Piercing Candlestick Pattern is a free indicator for mt4 (Metatrader 4) that displays Dark Cloud and Piercing candlestick patterns on the activity chart.
The indicator appears in the main MT4 chart window as white colored arrows that represent the Dark Cloud and Piercing candlestick patterns.
Dark Cloud & Piercing Candlestick Patterns can be used to find high probability trade entries and exits, or to confirm buy & sell trade setups issued by other trading systems or strategies.
Free Download
Download the “i Darkcloud Piersing.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Dark Cloud & Piercing Candlestick Pattern mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Dark Cloud & Piercing Candlestick Pattern Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Candlestick pattern
Does the indicator repaint? No.
Dark Cloud Piercing + No Lag Moving Average MT4 Scalping Strategy
This scalping strategy combines the Dark Cloud Piercing Candlestick Pattern Indicator with the No Lag Moving Average Indicator for MT4.
The goal is to capture short, high-probability moves during intraday trading sessions.
It’s a straightforward yet effective approach that helps traders align fast candlestick reversals with a clear, adaptive trend line.
The Dark Cloud Piercing Indicator plots a white up arrow when a bullish piercing pattern forms, and a white down arrow when a dark cloud cover appears, signaling potential reversals.
The No Lag Moving Average confirms the active trend using a blue line for bullish trends and a red line for bearish ones.
Together, these tools provide clarity and speed — both essential for scalping.
This method works best on the M5 and M15 charts for pairs like EURUSD, GBPUSD, and XAUUSD.
It’s designed for traders who want to make fast decisions with precise visual signals rather than analyzing multiple indicators.
Buy Entry Rules
- Wait until the No Lag Moving Average turns blue, confirming an uptrend.
- Look for a white up arrow from the Dark Cloud Piercing Indicator.
- Enter a buy trade at the opening of the next candle.
- Place a stop loss 8–12 pips below the recent swing low.
- Set your take profit at 1.5 to 2 times your stop loss distance, or close when the line turns red.
Sell Entry Rules
- Wait until the No Lag Moving Average turns red, confirming a downtrend.
- Look for a white down arrow from the Dark Cloud Piercing Indicator.
- Enter a sell trade at the opening of the next candle.
- Place a stop loss 8–12 pips above the recent swing high.
- Set your take profit at 1.5 to 2 times your stop loss distance, or close when the line turns blue.
Advantages
- Provides simple, clear buy and sell signals for quick decision-making.
- Combines candle-based reversal logic with trend confirmation.
- Works efficiently on short timeframes like M5 and M15.
- Low indicator lag helps react faster to price changes.
- Ideal for traders who prefer active market engagement.
Drawbacks
- Less effective during flat or sideways markets.
- Requires quick reaction time, which may not suit all traders.
- Whipsaws can occur during high volatility news events.
- Best results depend on disciplined risk management.
Example Case Study 1
On the EURUSD M5 chart, the No Lag Moving Average turned blue at the start of the London session.
A few candles later, a white up arrow appeared.
The buy entry was triggered, and within 20 minutes, the pair gained +12 pips before the price slowed down.
Stop loss was only 8 pips below entry, resulting in a 1.5R reward-to-risk ratio.
This trade illustrates how the setup can capture fast intraday movements.
Example Case Study 2
During the New York session, XAUUSD displayed a white down arrow just after the No Lag Moving Average turned red.
A short position was opened with a 10-pip stop loss.
Within 30 minutes, the price dropped by 18 pips, hitting the take profit target.
The setup aligned perfectly with momentum and confirmed the strength of the short-term bearish bias.
Strategy Tips
- Trade only during active sessions, such as London or New Yor,k for higher volatility.
- Avoid overlapping major news releases.
- Stick to one or two pairs to master their price rhythm.
- Always close trades before major session ends to avoid reversals.
- Backtest the settings before live trading to match your risk style.
Download Now
Download the “i Darkcloud Piersing.mq4” indicator for Metatrader 4
